Focussed on the discovery and development of major gold deposits in West Africa. October 2012

Transcription

1 Focussed on the discovery and development of major gold deposits in West Africa. October 2012

2 Disclaimer This presentation ( Presentation ) has not been approved by an authorized person within the meaning of the Financial Services and Markets Act This Presentation does not constitute, or form part of, a prospectus relating to Sovereign Mines of Africa Plc ( Company of Sovereign Mines ), nor does it constitute or contain any invitation or offer to any person to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by the Company as to the accuracy of the information or opinions contained in this document. It contains only a synopsis of more detailed information and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or completeness of the information in this Presentation. This Presentation does not constitute a recommendation regarding the shares of the Company. Viewing, downloading, reproducing, copying or distributing this Presentation may be restricted by law in certain jurisdictions. This Presentation is not for distribution outside the United Kingdom and in particular, it should not be distributed, directly or indirectly, by any means (including electronic transmission) either to persons with addresses in the United States, Canada, Australia, Japan, the Republic of South Africa or the Republic of Ireland, or to any citizens, nationals or residents thereof, or to any corporation, partnership or other entity created or organized under the laws thereof, nor should it be viewed by any such persons. Without limitation, the securities mentioned herein have not been and will not be, registered under the U.S. Securities Act of 1933, as amended (the Securities Act ), or under any U.S. State securities laws, and may not be offered or sold in the United States unless they are registered under the Securities Act or pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdictions. These Presentation Materials contain certain forward-looking information about the Company which are statements, beliefs, opinions or projections that are not historical facts, and which may be identified by the use of terminology such as proposes, may, believes, anticipates, projects, expects, estimates or forecasts or comparable terminology and which reflect the Company s or, as appropriate, the Company s Directors current expectations and beliefs about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed in such statements, beliefs and opinions depending on a variety of factors. Past performance, trends or activities of the Company or its shares cannot be relied on as a guide to future performance, trends or activities. Any forward-looking information contained in these Presentation Materials has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Forward-looking statements speak only as of the date of the Presentation. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, circumstances or otherwise or to reflect the occurrence or non-occurrence of any events. By viewing the Presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents and restrictions of this disclaimer. 1

3 Overview Admitted to AIM July 2011 Initial focus on Guinea. Flagship Project - The Mandiana-Magana (M-M) project-area straddles a major gold mineralizing system within a world-class gold district. The property has multiple zones of gold mineralisation along two major subparallel gold trends. Discovery Two-phases of drilling (8,000 metres) at M-M outlines broad zones of potentially ore-grade gold in a gold camp containing over 9,000 artisanal pits. Focus is now on the plus one- kilometre Yagbelen Zone Resource Objective to outline a potentially economic maiden resource. Potential Untested gold targets at M-M and the Dalagna and Marela gold projects containing recently identified gold prospects and soil geochemical anomalies testing of drill targets Q2,

4 Sovereign Mines of Africa (SMA) Success-Drivers Strong Management - Management team with a strong track record of multi-million-ounce gold discoveries. Extensive Network - Board of Directors and local management have broad network of Government and Commercial contacts throughout Africa. Sovereign Partner - Government of Guinea an equity partner and assisted in selection of licences. Teamwork - Two Senior Civil Servants in the Guinean Ministry of Mines are on the Board of local subsidiary (Sovereign Mines of Guinea). Expandable - Opportunity to replicate the Sovereign-partnership model across sub- Saharan Africa and position SMA as an incubator of major gold development projects. 3

5 West Africa One of the fastest growing gold districts in the world Extensive gold- bearing Birimian greenstone belts with world- class gold deposits Guinea is under- explored region even by West Africa benchmarks. SMA s focus is on areas of historic and current small- scale gold mining with no modern exploracon. 4

6 Mandiana-Magana Property Setting 5

7 Mandiana-Magana - Drillling Highlights Yagbelen Zone 37 holes for 5,365 metre Strike length 1km and open Highlight 2.62g/t gold over 76m Wyondjan Zone 15 holes for 2,235 metres Strike length 1km and open Highlight 1.8g/t gold over 23m Damantere Zone 4 holes for 480 metres Strike length 200m and open Highlight 1,78g/t gold over 44m 6

8 Mandiana-Magana Phases 1 and 2 - Significant Intersections Phase 1 Significant Intersections Interval (m) Grade Drill Hole From To Length gpt Gold RCY and RCY RCY RCY and and and RCY RCY RCW and and RCW RCW and and RCW RCW RCD and Phase 2 Significant Intersections Interval (m) Grade Drill Hole From To Length gpt Gold RCY (1.41) Including RCY Including RCY Including RCY Including Including RCY Including RCY RCY

9 Mandiana-Magana - Yagbelen Zone Major NW trending gold zone Traced over 8km across concession MulTple gold zones within 300m width Extensive small- scale gold mining SMA drilling limited to 1km strike- length and 150m depth 37 drill holes confirm gold mineralisaton on all sectons Gold mineralisaton open along strike and at depth. 8

10 Yagbalen - Cross Section 5 9

11 Dalagna Concession Extension Modern Orpaillage Significant Historical Alluvial Resource SMA Geochemical Anomaly + 3km Primary Gold Prospect 1 on Map Primary Gold Prospect 3 on Map 10

12 Marela Project - Priority Target Areas for Soil Sampling Extensive historic and current alluvial gold artsanal workings. Very limited modern exploraton of prospectve Archean greenstone belts for primary gold sources. Numerous gold anomalies, with values to 12.7ppm gold, identfied in stream sediment geochemical surveys undertaken by SMG. Follow- up prospectng, mapping and soil geochemical surveys, to define drill targets, in progress. 11

13 Sovereign Mines of Africa Group Structure Shares in Issue: 194,692,183 Current Market Cap: 8.5 million Sovereign Mines of Africa Plc 100% Sovereign Mines of Africa Ltd. Republic of Guinea 40% Local Investors 5.0% John Barry Exploration Director 2.5% 52.5% Sovereign Mines of Guinea Ltd. 100% Guiord SA 12

14 Directors & Management Chairman Exploration Director Finance Director Non Exec Director Non Exec Director - David Pearl - John Barry - Nathan Steinberg - James Comyn - John Prochnau Group Vice President - Sherif Haidara Country Manager (SMA) - Glenn Kendrick Chief Geologist - Yury Deryugin Managing Director (SMG) - Abdoullaya Diallo 13

15 Directors & Management David Pearl (Chairman) - David has been involved in all aspects of investment, fund management and corporate finance relating to smaller quoted companies. He has been a director of numerous public companies and was Executive Chairman of London Securities Plc between 1984 and 1994, during which period he was also Non Executive Chairman of The Crown Suppliers and Deputy Chairman of Medway Ports Authority. He was Executive Chairman of Premier Asset Management Plc from 1995 to1997 and from 1994 to 2001 was a Non Executive Director of Stanley Plc. John Barry (Exploration Director) - John has worked for over 20 years on a range of gold and base metal deposits in Europe, Africa, Australia and Asia and has discovered, sourced and supervised feasibility studies on multi-million ounce gold deposits in Ghana (Ahafo), Tanzania (Nyanzaga) and Mali (Yanfolila). John is also the CEO and President of Rathdowney Resources Ltd (TSX-V), which explores for base metal deposits in Poland and Ireland, John is also Non-Exec Chairman of AIM-listed Orogen Gold PLC which is exploring the Deli Jovan gold project in Serbia. Nathan Steinberg (Finance Director) - Nathan has considerable public company experience in the mining sector. He is a Member of the Council of the Institute of Chartered Accountants in England & Wales. He is a director of Longships PLC and Ambrian Capital PLC, the natural resources investment bank. As part time Finance Director of Pan African Resources Plc he was previously part of the management team responsible for the reverse acquisition of the Barberton Mines located in South Africa in July 2007 which established Pan African as a gold producer. James Comyn (NED) - James has spent his career conducting business in Africa. He is currently working for De La Rue, negotiating high level contracts, for the sale of goods and services to Central Banks and Governments in West, Central and East Africa. He was previously Managing Director of four Michelin companies in the Southern Africa region. James Comyn has had many years experience of negotiating at government level in Africa. John Prochnau (NED) - John is a Mining Engineer and Geologist, with degrees from the University of Washington in Seattle, USA, and McGill University in Montreal, Canada. Early in his career he held executive positions with Selection Trust Limited, London, where he was responsible for U. S. operations, and Billiton International Metals of The Hague, The Netherlands. Since 1984 he has operated as an international minerals consultant, managed a number of private and public companies and been responsible for gold and base metal discoveries and mine developments in North America, South America and Australia. He was co-founder with David Pearl of Brancote Holdings PLC, which discovered the Esquel Gold Deposits in Argentina and which was sold in 2002 for US$200 million. Sherif Haidara (Group Vice President) - Sherif Haidara, who has an MBA in administration, has been CEO since 1998 of La Solutions Inc, which advises companies with business interests in West Africa. He was General manager of Societe d Ingenierie de Financement pour l Afroque from 1990 to 1994 and of Inversora merden Inc. from 1994 to 1996, responsible for negotiations to reestablish diplomatic relations between Israel and Senegal, Mautitania and Niger. From 1995 to 1997 he was Adviser to the President of Comore and from 1995 to 1998 Special Adviser to the president of Niger. He has been a director of Pearl Capital Partners Limited since Yury Deryugin (Chief Geologist) - Yury is a Russian national, who first worked in Guinea between 1990 and 1993 as Chief Geologist of a Soviet Expedition assisting Guinea in a geological mapping survey, which included prospect identification in the Dinguiraye and Kerouane areas. Yury also worked for a private equity backed Russia-Guinean company in the Bagui-Dinguiraye area between where Sovereign Mines holds one of the Gold Concessions. He was one of two senior Russian geologists working for Canadian-listed Moydow Mines who discovered the multi-million ounce E-Zone (Ntotoroso) gold deposit at Ahafo in Ghana which is now an integral part of the Ahafo Gold Mine and Newmont s flagship gold mines in Africa. Abdoullaya Diallo (Chief Operating Officer, SMG) - Abdoullaya Kobina Diallo graduated from the University of Conakry in 1996 with a degree in mathematics. He had been employed by SMG since 2009, first as Data and Concesison Manager and more recently as Managing Director. Prior to that he was a consultant to several companies in Guinea advising on logistics. From he was employed by World Education Guinea as Logistics Manager and from he was secretary of Administration for Peace Corps Guinea. Glenn Kendrick (Country Manager) - Glenn has nearly 30 years experience of working in Africa, including in Guinea and a proven track record of managing and developing drilling programmes for a number of public Companies including de Beers and BHP Diamonds. 14

16 Conclusions SMA is focussed on gold discovery in West Africa People - Highly experienced exploration management with a track record of major gold discoveries. Flagship M-M Project Drilling toward a maiden gold resource. Potential Three highly prospective gold properties, any of which could become a company-making asset. Short term milestones - Maiden resource at M-M new gold discovery at Dalagna and/or Marela? 15

17 Website: David B Pearl FCA Chairman (0) david.pearl@sovmines.com John Barry Exploration Director (0) john.barry@sovmines.com Nathan Steinberg FCA Finance Director 0044 (0) nathan@munslows.co.uk 16